HOOKER FURNISHINGS CORP (HOFT)
US4390381006 - Common Stock
HOFT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 68 industry peers in the Household Durables industry. No worries on liquidiy or solvency for HOFT as it has an excellent financial health rating, but there are worries on the profitability. HOFT has a correct valuation and a medium growth rate. HOFT also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HOFT had positive earnings in the past year.
In the past year HOFT had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: HOFT reported negative net income in multiple years.
HOFT had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
HOFT has a Return On Assets (2.79%) which is comparable to the rest of the industry.
HOFT's Return On Equity of 4.24% is on the low side compared to the rest of the industry. HOFT is outperformed by 61.19% of its industry peers.
HOFT has a Return On Invested Capital of 3.64%. This is in the lower half of the industry: HOFT underperforms 65.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HOFT is significantly below the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 4.24% | ||
| ROIC | 3.64% |
ROA(3y)1.61%
ROA(5y)1.23%
ROE(3y)2.31%
ROE(5y)1.81%
ROIC(3y)4.51%
ROIC(5y)5.34%
1.3 Margins
The Profit Margin of HOFT (2.21%) is worse than 61.19% of its industry peers.
In the last couple of years the Profit Margin of HOFT has declined.
With a Operating Margin value of 3.20%, HOFT is not doing good in the industry: 67.16% of the companies in the same industry are doing better.
HOFT's Operating Margin has declined in the last couple of years.
HOFT has a Gross Margin (25.42%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HOFT has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.2% | ||
| PM (TTM) | 2.21% | ||
| GM | 25.42% |
OM growth 3Y-16.06%
OM growth 5Y-15.9%
PM growth 3YN/A
PM growth 5Y-17.12%
GM growth 3Y6.93%
GM growth 5Y3.4%
2. Health
2.1 Basic Checks
HOFT has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HOFT has less shares outstanding
HOFT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HOFT has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.54 indicates that HOFT is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.54, HOFT perfoms like the industry average, outperforming 55.22% of the companies in the same industry.
The Debt to FCF ratio of HOFT is 0.47, which is an excellent value as it means it would take HOFT, only 0.47 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HOFT (0.47) is better than 85.07% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that HOFT is not too dependend on debt financing.
HOFT has a better Debt to Equity ratio (0.10) than 76.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.47 | ||
| Altman-Z | 3.54 |
ROIC/WACC0.34
WACC10.69%
2.3 Liquidity
A Current Ratio of 3.98 indicates that HOFT has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.98, HOFT is in the better half of the industry, outperforming 73.13% of the companies in the same industry.
A Quick Ratio of 2.49 indicates that HOFT has no problem at all paying its short term obligations.
HOFT has a better Quick ratio (2.49) than 89.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.98 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
HOFT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 302.22%, which is quite impressive.
HOFT shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -23.08% yearly.
Looking at the last year, HOFT shows a very negative growth in Revenue. The Revenue has decreased by -25.71% in the last year.
HOFT shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -8.72% yearly.
EPS 1Y (TTM)302.22%
EPS 3Y-31.57%
EPS 5Y-23.08%
EPS growth Q2Q103.75%
Revenue 1Y (TTM)-25.71%
Revenue growth 3Y-7.09%
Revenue growth 5Y-8.72%
Revenue growth Q2Q-26.29%
3.2 Future
The Earnings Per Share is expected to grow by 48.97% on average over the next years. This is a very strong growth
HOFT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.93% yearly.
EPS Next Y62.53%
EPS Next 2Y48.97%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.79%
Revenue Next 2Y10.93%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 19.78 indicates a rather expensive valuation of HOFT.
HOFT's Price/Earnings ratio is in line with the industry average.
HOFT's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.25.
HOFT is valuated correctly with a Price/Forward Earnings ratio of 12.17.
The rest of the industry has a similar Price/Forward Earnings ratio as HOFT.
HOFT's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 12.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HOFT indicates a somewhat cheap valuation: HOFT is cheaper than 64.18% of the companies listed in the same industry.
HOFT's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HOFT is cheaper than 94.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.94 | ||
| EV/EBITDA | 7.72 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HOFT's earnings are expected to grow with 48.97% in the coming years.
PEG (NY)0.32
PEG (5Y)N/A
EPS Next 2Y48.97%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.09%, HOFT is a good candidate for dividend investing.
In the last 3 months the price of HOFT has falen by -28.06%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
HOFT's Dividend Yield is rather good when compared to the industry average which is at 3.34. HOFT pays more dividend than 92.54% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, HOFT pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
5.2 History
The dividend of HOFT is nicely growing with an annual growth rate of 9.26%!
HOFT has paid a dividend for at least 10 years, which is a reliable track record.
HOFT has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.26%
Div Incr Years8
Div Non Decr Years10
5.3 Sustainability
HOFT pays out 101.16% of its income as dividend. This is not a sustainable payout ratio.
The dividend of HOFT is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.16%
EPS Next 2Y48.97%
EPS Next 3YN/A
HOOKER FURNISHINGS CORP
NASDAQ:HOFT (4/24/2024, 7:07:59 PM)
After market: 18 0 (0%)18
-0.45 (-2.44%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap191.88M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.09% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.78 | ||
| Fwd PE | 12.17 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.32
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.79% | ||
| ROE | 4.24% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.2% | ||
| PM (TTM) | 2.21% | ||
| GM | 25.42% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.98 | ||
| Quick Ratio | 2.49 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)302.22%
EPS 3Y-31.57%
EPS 5Y
EPS growth Q2Q
EPS Next Y62.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-25.71%
Revenue growth 3Y-7.09%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y